Business 101: Intro to Business
Not-for-profit Corporation - ANS-Organization whose goals do not include pursuing a
profit.
Common stock - ANS-Shares that give owners voting rights but only residual claims to
firm's assets and income distribution.
joint venture - ANS-partnership between companies formed for a specific undertaking
Conglomerate merger - ANS-Agreement the combines unrelated firms, usually with goal
of diversification, spurring sales growth or spending cash surplus to avoid takeover
attempts.
Merger - ANS-When two or more firms combine to form one company.
Horizontal Merger - ANS-The joining of two firms in the same industry, to diversify,
increase customer bases, cutting cost, or expand product.
Vertical Merger - ANS-Combines forms at different levels in production and marketing
process
Acquisition - ANS-When one firm purchases another.
Board of Directors - ANS-Governing body of corporation.
Stockholder - ANS-Owner of corporation due to purchase in stock.
Preferred Stock - ANS-Shares that give owners limited voting rights and rights to
receive dividends or assets before common stock owners.
Employees Ownership - ANS-When workers buy shares of stock in company that
employs them.
Limited Liability Company (LLC) - ANS-Business entity that secures corporation of
limited liability while also avoiding double taxation.
Not-for-profit Corporation - ANS-Organization whose goals do not include pursuing a
profit.
Common stock - ANS-Shares that give owners voting rights but only residual claims to
firm's assets and income distribution.
joint venture - ANS-partnership between companies formed for a specific undertaking
Conglomerate merger - ANS-Agreement the combines unrelated firms, usually with goal
of diversification, spurring sales growth or spending cash surplus to avoid takeover
attempts.
Merger - ANS-When two or more firms combine to form one company.
Horizontal Merger - ANS-The joining of two firms in the same industry, to diversify,
increase customer bases, cutting cost, or expand product.
Vertical Merger - ANS-Combines forms at different levels in production and marketing
process
Acquisition - ANS-When one firm purchases another.
Board of Directors - ANS-Governing body of corporation.
Stockholder - ANS-Owner of corporation due to purchase in stock.
Preferred Stock - ANS-Shares that give owners limited voting rights and rights to
receive dividends or assets before common stock owners.
Employees Ownership - ANS-When workers buy shares of stock in company that
employs them.
Limited Liability Company (LLC) - ANS-Business entity that secures corporation of
limited liability while also avoiding double taxation.
